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Retailer’sPrivateBrandSupermarkets’BrandstretchingSupermarkets’Brandstretching
Saturatedretailfoodmarkets.
Diversificationwithinthefinancialservicesmarketthroughsettinguptheirownbank.
Provisionofown-labelproducts,suchasclothing,mobilephones,andsoon.

PrivateBrand
Alsoknownasstorebrandsorretailbrands,havingbeenenjoyingincreasedsuccessinrecentyears.
Asimplifiedprocessofthelaunchingofaprivatebrandincludestwosteps:
Theretailerdecideswhethertoinitiateaprivatebrand.
Themanufacturerdecideswhethertoproducetheproductfortheretailer.

PrivateBrand
Case1:Wal-Mart
40%ofproductsareprivatebrands.
Wal-MartinChinaoffersmorethan1,800kindsofown-labelproducts,thenumberisstillontherise.
Wal-Martprivatebrandshavenowdevelopedintoalargeseries.

Case2:CarrefourSupermarkets’BrandstretchingWhyaretheretailerssoengagedinlaunchingprivatebrands?
Increasingstoreloyaltyanddifferentiatingthestorefromotherretailers.
Minimalmarketingandadvertisingexpenses
Owingtolowersupplyingcost,privatebrandproductscanbesoldatlowerprice,withtheirqualityasgoodasnationalbrands.

Comparisonbetweenproducts’pricesofGreatValueandotherfamousnationalbrandsInaddition,withlowercost,productsofprivatebrandscanhavemuchmoreflexiblepricingstrategies.Soretailerscanlaunchabrandpotfolio,positionedwithdifferentpricesaimedatdifferenttypesofcustomers.
Forsomecategoriesofproducts,privatebrandcanensurethemselvesaconstantandstablesupplychain.
Alltheseadduptotheirincreasedretailmargine,customerloyaltyandstrengthenednegotiatingpositionvis-a-vismanufacturersSupermarkets’BrandstretchingWhatwillhappeninthefuture?
Supermarkets’diversificationissetto
continue.
Asupermarketown-labelcar
Ahousefromasupermarketestateagent
Avisitingtoasupermarketdentist
Aquietrevolutionofourshoppinghabits
isunderway.Thanksforyoursincerelistening